Canadians Spend More On Taxes Than All Of Their Living Costs Combined
44 percent of Canadians total income goes towards taxes.
As Canadians, we are used to paying a variety of different taxes throughout our nation. Often, these taxes go towards helping to better develop and grow our community, education system and country. However, a new study shows that Canadians are actually paying more in taxes than they are for food and housing costs combined.
According to a new study done by the Fraser Institute, it was discovered that the average Canadian family often spent more than 44 percent of their total income on taxes in 2018. This means, that it was recorded that Canadians actually spent more on taxes than they did for the cost of living.
Fraser Institute states that the average Canadian family earned around $88,865 a year and paid $39,299 of that in taxes.
Yet, an average Canadian family could be seen spending around $32,214 on living costs, which included housing (rent or mortgage payments), food, and clothing costs. This means that a majority of Canadians were actually spending around $7,000 more on taxes than they are on the basic necessities of life.
Therefore, the study concludes that despite crazy high rent costs or the rising gas prices in some provinces, taxes are currently the largest household expense for Canadians across the country.
On top of this, the study shows that this average tax cost is almost three times more than what Canadians paid in taxes in 1961, after adjusting inflation rates.
The study records that the average tax rate has climbed from 33.5 percent to 44.2 percent since 1961, meaning that Canadians are spending a record-breaking amount on taxes, more than they have been in the past 57 years.
So where is all the money going? Taxes that are often paid by Canadians to the federal, provincial and local governments and cover costs such as income, payroll, property, carbon, alcohol, fuel taxes and much more.
While Canadians may be spending a lot in taxes, they are important to help fund public services that are used by Canadians every day.
However, co-author of the study Jake Fuss states, "Of course, taxes help fund important public services, but with more than 44 percent of their income going to taxes, Canadians might wonder whether they're getting good value for their tax dollar."